The idea of a new international airport for London has taken a first step towards reality with news that the government plans to hold a formal consultation on proposals for a Thames estuary hub.

According to reports, David Cameron will announce a consultation by March – when the transport secretary, Justine Greening, will publish the government's broader aviation strategy.

The airport, dubbed "Boris Island" after its most prominent supporter, the mayor of London, Boris Johnson, would be an international hub that could open up new routes to the far east and have capacity for connecting flights. At present, the British aviation industry says the nation is losing out to rivals airports such as Schiphol in Amsterdam and Paris Charles de Gaulle.

The government has ruled out a third runway at Heathrow, as has Labour since leaving power.

Colin Matthews, the chief executive of airports operator BAA, said he was "pleased there was an acknowledgement that there was a need" for more airport capacity, but it would take decades to construct a whole new airport.

"The recognition today is that it matters to the UK economy, to jobs and to growth. There's no reason why any option should be ruled out."

Greening has also ruled out further runways at Gatwick and Stansted in answers to parliamentary questions.

Johnson told the BBC: "You can't go on expecting Britain to compete with France and Germany when we simply can't supply the flights to growth destinations."

Heathrow, he said, was "fundamentally in the wrong place". He said listening to the "Heathrow recidivists" who argue that other options for airport expansion take too long would only lead to paralysis.

In his autumn statement, the chancellor, George Osborne, indicated the government would consider all options for airport expansion, which he sees as an opportunity for economic regeneration.

The architect Norman Foster has drawn up plans for an estuary airport. However, planes would have to contend with the danger from millions of birds nesting there – a hazard to aviation that has also brought out opposition from the RSPB and environmental groups.

A Department for Transport spokesman said: "No decisions have been taken. As the chancellor made clear in his autumn statement, we will explore all the options for maintaining the UK's aviation hub status, with the exception of a third runway at Heathrow. The government will consult on a sustainable framework for UK aviation this spring at which time we will set out our long term plans for the sector."